Accounting · IAS 21 - Translation of Foreign Currency Transactions
In accordance with IAS 21 - The Effects of Changes in Foreign Exchange Rates, which combination of exchange rates is acceptable for translating foreign currency transactions (purchases and sales) throughout an accounting period?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The rate at the beginning of the period and the rate at the end of the period
- 2The closing exchange rate and an average rate for the period
- 3The spot exchange rate at the transaction date or an appropriate average rate if fluctuations are minor✓
- 4The rate at the beginning of the period and the closing rate
Correct answer
The spot exchange rate at the transaction date or an appropriate average rate if fluctuations are minor
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